Brokerages Set Leonardo DRS, Inc. (NASDAQ:DRS) Target Price at $53.75

Shares of Leonardo DRS, Inc. (NASDAQ:DRS) have earned a consensus rating of “Moderate Buy” from the five research firms that are presently covering the firm, MarketBeat reports. Two investment analysts have rated the stock with a hold recommendation, two have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month target price among brokerages that have issued a report on the stock in the last year is $53.75.

Several research analysts recently issued reports on DRS shares. Canaccord Genuity Group upped their target price on Leonardo DRS from $52.00 to $54.00 and gave the company a “buy” rating in a research report on Wednesday, May 6th. Truist Financial raised shares of Leonardo DRS to a “strong-buy” rating in a report on Friday, May 1st. Wall Street Zen upgraded Leonardo DRS from a “hold” rating to a “buy” rating in a research report on Sunday, May 10th. Finally, Weiss Ratings upgraded shares of Leonardo DRS from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, July 23rd.

More Leonardo DRS News

Here are the key news stories impacting Leonardo DRS this week:

• Positive Sentiment: Q2 results exceeded expectations. Revenue increased 10% year over year to $913 million, topping the $902.2 million consensus estimate, while adjusted EPS rose 52% to $0.35 versus expectations of $0.27. Net earnings climbed 59% to $86 million. Leonardo DRS Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Profitability and demand improved. Adjusted EBITDA grew 33% to $128 million, with margin expanding to 14.0%. Bookings reached $1.1 billion, producing a 1.2x book-to-bill ratio, while funded backlog rose 17% to a record $5.1 billion. Leonardo DRS Announces Second-Quarter Results
• Positive Sentiment: Full-year earnings guidance was raised. DRS increased 2026 adjusted EBITDA guidance to $525 million-$540 million from $515 million-$530 million and adjusted EPS guidance to $1.34-$1.39 from $1.26-$1.30. Revenue guidance was maintained at $3.9 billion-$3.975 billion. Leonardo DRS Raises Guidance
• Positive Sentiment: Raft expands DRS’s software capabilities. The company agreed to acquire Raft for $450 million in cash, adding artificial intelligence, data fusion and mission-software technologies that could support longer-term growth in multi-domain defense programs. Leonardo DRS to Acquire Raft
• Neutral Sentiment: DRS declared another quarterly dividend of $0.09 per share, payable August 27 to shareholders of record August 13. The payout supports shareholder returns but represents a modest approximately 0.8% annual yield. Leonardo DRS Earnings Information
• Negative Sentiment: The $450 million all-cash Raft purchase is not included in current guidance and could reduce cash or require additional financing; DRS reported $270 million of cash at quarter-end. Investors may also view the stock’s elevated valuation, with a P/E above 40, as leaving limited room for execution disappointments.

Insider Transactions at Leonardo DRS

In related news, EVP Jason Rinsky sold 3,865 shares of Leonardo DRS stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $46.87, for a total value of $181,152.55. Following the sale, the executive vice president directly owned 31,310 shares in the company, valued at approximately $1,467,499.70. The trade was a 10.99% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO John Baylouny sold 36,471 shares of the business’s stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $45.67, for a total value of $1,665,630.57. Following the sale, the chief executive officer owned 122,435 shares of the company’s stock, valued at $5,591,606.45. The trade was a 22.95% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 65,364 shares of company stock worth $2,994,785 in the last three months. 0.25% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Leonardo DRS

A number of institutional investors have recently added to or reduced their stakes in the stock. Norges Bank acquired a new position in Leonardo DRS in the 4th quarter valued at about $37,481,000. Stephens Investment Management Group LLC lifted its stake in Leonardo DRS by 107.6% during the first quarter. Stephens Investment Management Group LLC now owns 2,118,331 shares of the company’s stock worth $94,308,000 after purchasing an additional 1,098,108 shares in the last quarter. Millennium Management LLC boosted its holdings in Leonardo DRS by 152.1% during the 3rd quarter. Millennium Management LLC now owns 1,776,185 shares of the company’s stock valued at $80,639,000 after acquiring an additional 1,071,708 shares during the period. AQR Capital Management LLC boosted its stake in shares of Leonardo DRS by 528.6% in the third quarter. AQR Capital Management LLC now owns 1,273,444 shares of the company’s stock valued at $56,000,000 after purchasing an additional 1,070,870 shares during the period. Finally, UBS Group AG boosted its position in Leonardo DRS by 566.2% in the 3rd quarter. UBS Group AG now owns 711,588 shares of the company’s stock valued at $32,306,000 after buying an additional 604,783 shares during the period. Hedge funds and other institutional investors own 18.76% of the company’s stock.

Leonardo DRS Trading Down 2.0%

Shares of NASDAQ DRS opened at $45.62 on Friday. Leonardo DRS has a twelve month low of $32.43 and a twelve month high of $50.59. The firm has a market cap of $12.17 billion, a PE ratio of 42.64, a price-to-earnings-growth ratio of 3.36 and a beta of 0.36. The business has a fifty day simple moving average of $45.65 and a two-hundred day simple moving average of $43.90. The company has a quick ratio of 1.52, a current ratio of 1.86 and a debt-to-equity ratio of 0.05.

Leonardo DRS (NASDAQ:DRS) last posted its earnings results on Thursday, July 30th. The company reported $0.35 EPS for the quarter, beating analysts’ consensus estimates of $0.27 by $0.08. The business had revenue of $913.00 million for the quarter, compared to the consensus estimate of $903.27 million. Leonardo DRS had a net margin of 7.85% and a return on equity of 12.02%. The company’s revenue for the quarter was up 10.1% on a year-over-year basis. During the same quarter last year, the firm posted $0.23 EPS. Leonardo DRS has set its FY 2026 guidance at 1.340-1.390 EPS. Analysts expect that Leonardo DRS will post 1.3 earnings per share for the current fiscal year.

Leonardo DRS Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 27th. Shareholders of record on Thursday, August 13th will be given a dividend of $0.09 per share. The ex-dividend date is Thursday, August 13th. This represents a $0.36 dividend on an annualized basis and a yield of 0.8%. Leonardo DRS’s dividend payout ratio is currently 33.64%.

Leonardo DRS Company Profile

Leonardo DRS is a U.S.-based defense technology company and wholly owned subsidiary of Italy’s Leonardo S.p.A. The firm specializes in developing and integrating mission-critical systems for military and government customers, with a primary focus on command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR). Its core offerings encompass advanced sensors, targeting systems, radars and electronic warfare solutions designed to enhance situational awareness and operational effectiveness across land, sea and air domains.

The company’s portfolio includes naval combat management systems, unmanned vehicle sensors, power generation and distribution equipment, and training and simulation solutions.